If the terms are too unfavorable to you, neither of those things will happen.It goes without saying (but I'll say it anyway), that it ALL needs to be in writing.

If you default they have a non-performing asset on their book that has an unfavorable equity position.

Many times people find acting like they don't know the answers (or avoiding minor calculations to get the answers because they know they will get an unfavorable number) less ethically challenging than lying.

You will have to comply with the rules of the jurisdictions of both your fund and your investors, so you can't avoid unfavorable rules by setting up outside of the US if that's where your investors are.  

There are risks associated with blankets, specifically exposure of all assets in the blanket, and necessity to release property in event you want to sell which could lead to unfavorable reappraisals...Having said this, your question is a risk/reward and strategy question.  

The notion that commercial financing is so unfavorable relative to residential is false.  

Now I recognize that a military town is going to have much different flows but I would think right now these homes would be getting snapped up so they could be ready for rent or sale before the summer PCS cycle starts.Is Oak Grove just that unfavorable compared to Clarksville?

It has been my experience that those offering 100% either prevent the loan from closing and collect on non-refundable junk fees or they are taking considerable profits on the back end with unfavorable terms to the borrower.  

Prior administrations changed labor laws to be unfavorable (I know someone that sold their peach orchard because of it).

I live 14 miles away from Rock Springs and unfortunately I would have to agree with the experience could be unfavorable in this area.